Before I continue with this information let me give you a disclaimer; I am not an insurance agent or an attorney. For legal advice or any advice regarding this topic contact your insurance agent or legal counsel.

In one of my blogs I discussed how to keep your home insurance low, but have you ever thought about what should be listed in your policy?

I get it. Some of the polices are written with such fine print that it would take a microscope to read it. How many layman really understand the legal mumbo jumbo contained in their insurance policy. A great Insurance agent can help you navigate the legal wrangling of your insurance contract.

Some things you should look for when you compare insurance policies.

Flood insurance: Many insurance policies do not cover floods of any kind. Even when you are not in a flood zone you might consider adding flood insurance to your policy. Floods not only happen naturally but also could be side effect of developments or construction in the general area.

Does your policy cover to “bringing your property up to code” in case of damage? Why is that important?

If your home was built 10 to 15 years ago it is possible that it may not meet current local code requirements. During the last 10 to 15 years many zoning ordinances and building codes have changed. To bring a home back up to zoning ordinances and building code standards could be a very expensive out of pocket expense when it is not covered by insurance. Typically, during the rebuilding process, buildings must be rebuilt to the new codes.

Another thing to look for in your policy is liability coverage that covers not only accidents, but also assault and battery. Regardless of how much we like our neighbors, friends, and family, when we invite them over to our home they may bring with them their personal life we might not know about. If they decide to duke out their disagreement on your front lawn you could be liable for damages or injuries they sustain. You need to make sure you are covered.

I would like to add another thought. Just because you paid off your mortgage does not mean you should drop your insurance coverage. What you should do is send a “paid in full letter” from your mortgage company to your insurance company so they can take your mortgage company off the policy. In some cases they will reduce your payment as long as you are personally occupying the house.

For more information on insurance related items contact your insurance agent or when you are looking to lower your rate contact one of the agents listed on our resource page. For any Real Estate related questions or concerns contact the Settles Team. We are never too busy to answer any of your questions or address any of your concerns.